The European fund-of-funds market, with over €1.1 trillion in assets, is undergoing a major evolution driven by investor demand for diversification, fee transparency, and simplicity.
Allocation funds dominate this landscape—especially in the United Kingdom, which accounts for nearly one-third of the market. While much of Europe has seen outflows in recent years, the UK fund-of-funds segment continued to attract inflows in 2023 and 2024, thanks to its lower fees, averaging 0.86% vs. 1.64% in Europe, and wider access to passive and hybrid investment strategies.
Investors and advisors alike are shifting capital away from high-cost fund-of-funds toward low-cost, passive or blended models. Vanguard’s LifeStrategy funds, with fees around 0.22% and 100% passive holdings, are now among the most widely used.
For a deeper dive into fund rankings, portfolio trends, and the impact of fee structures, check out the full European Fund-of-Funds Landscape Report.
